Tractor Supply Company (TSCO)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,188,150 | 9,205,010 | 9,032,820 | 8,848,820 | 8,489,990 | 7,911,730 | 7,869,190 | 7,686,810 | 7,767,470 | 7,745,190 | 7,687,890 | 7,359,680 | 7,049,120 | 6,860,800 | 6,611,080 | 6,002,400 | 5,289,270 | 5,429,300 | 5,312,720 | 5,437,200 |
| Total stockholders’ equity | US$ in thousands | 2,149,760 | 2,111,130 | 2,087,150 | 1,914,550 | 2,042,420 | 1,941,140 | 1,913,870 | 1,790,020 | 2,002,660 | 2,020,750 | 1,980,110 | 1,852,300 | 1,923,840 | 1,875,870 | 1,695,730 | 1,353,720 | 1,567,120 | 1,491,820 | 1,544,940 | 1,485,580 |
| Financial leverage ratio | 4.27 | 4.36 | 4.33 | 4.62 | 4.16 | 4.08 | 4.11 | 4.29 | 3.88 | 3.83 | 3.88 | 3.97 | 3.66 | 3.66 | 3.90 | 4.43 | 3.38 | 3.64 | 3.44 | 3.66 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,188,150K ÷ $2,149,760K
= 4.27
The financial leverage ratio of Tractor Supply Company has shown fluctuations over the past few quarters, ranging between 3.38 and 4.62. The ratio peaked at 4.62 in the first quarter of 2023 and hit its lowest point at 3.38 in the first quarter of 2019. Generally, the trend indicates an upward movement, suggesting an increase in the company's reliance on debt to finance its operations. A higher financial leverage ratio signifies that a larger portion of the company's assets is funded by debt, which can indicate higher financial risk and interest expense. The company should carefully monitor its debt levels and ensure it maintains a healthy balance between debt and equity financing to support sustainable growth and profitability.
Peer comparison
Dec 31, 2023